In good faith and for value, Joya gets from Kyle a negotiable bearer instrument. Joya does not know that Kyle stole the instrument. Joya is
A)an HDC.
B)not an HDC, because Kyle did not acquire the instrument for value.
C)not an HDC, because Kyle did not acquire the instrument in good faith.
D)not an HDC, because Kyle transferred the instrument without notice.

Question

Quizplus · Accepted Answer

Joya is considered a holder in due course (HDC) because she acquired the negotiable instrument in good faith, for value, and without knowledge of its theft or any defenses against it. The conditions for being an HDC do not depend on the manner in which the previous holder acquired the instrument.

In Good Faith and for Value, Joya Gets from Kyle